Spot gold was up 0.2% at $1,961.99 an ounce, 0332 GMT, closing in on a more than a week high hit in the previous session, and adding nearly 2% so far this week. US gold futures were flat at $1,963.40.
“I would say gold’s recent gains are due to concerns over Ukraine, as we haven’t had the kind of progress in the negotiations that the markets were hoping for earlier this month,” said Ilya Spivak, strategist. currencies at DailyFX.
Western leaders on Thursday delivered military and humanitarian aid to Ukraine and denounced Moscow’s invasion of its neighbor as “barbarism”, as thousands of people in besieged towns took shelter underground to escape the Russian bombings.
“But soaring yields and the fact that the Fed is seen as being quite aggressive, that has prevented this rally from gaining any meaningful momentum. It’s trying, but it seems the Fed’s history is limiting its ability to extend higher “, Spivak said.
The U.S. Federal Reserve raised borrowing costs by 25 basis points on March 16, and since then key central bank officials have signaled a more aggressive approach to monetary policy tightening this year to combat rising of inflation.
Yields on the 10-year U.S. Treasury bond remained near their 2019 highs.
Rising yields and interest rates reduce the opportunity cost of holding non-paying bullion.
Spot gold could retest resistance at $1,967 per ounce, according to Reuters technical analyst Wang Tao.
Spot silver rose 0.6% to $25.66 an ounce, while platinum gained 1% to $1,030.45 and palladium was flat at $2,523.01.